Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
Asian Stocks Slide as Chip Selloff Deepens Ahead of TSMC Earnings 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Asian stock markets opened the week lower as investors reduced risk exposure amid thin year-end liquidity, looming central bank decisions, and a packed schedule of delayed economic data releases. Early Monday trading saw MSCI’s broadest index of Asia-Pacific shares outside Japan fall by 0.6%, with South Korean equities leading losses after sliding as much as 2.7%, despite being among the strongest-performing markets this year.
Market sentiment has been weighed down by caution as traders approach the final full trading week of 2025. According to market analysts, many investors have already begun closing positions ahead of the holidays, contributing to lower liquidity. While trading conditions remain manageable for now, liquidity is expected to drop sharply as the year draws to a close, potentially amplifying market moves.
Global investors are closely watching a series of central bank policy decisions. The Bank of Japan is widely expected to raise interest rates by 25 basis points to 0.75%, reflecting confidence in the country’s economic resilience. In contrast, the Bank of England may cut rates by the same margin to 3.75%, while the European Central Bank, along with Sweden’s Riksbank and Norway’s Norges Bank, is expected to keep rates unchanged. These decisions could influence global currency markets, bond yields, and equity flows.
U.S. markets showed modest stability, with S&P 500 e-mini futures up 0.1% and the 10-year Treasury yield holding near 4.18%, as investors awaited key U.S. economic indicators. These include the November jobs report and consumer price index data, both delayed due to the recent U.S. government shutdown.
In Asia, Japanese stocks were supported by a strong Tankan survey, which revealed that large manufacturers’ sentiment reached a four-year high, suggesting the economy is withstanding pressure from higher U.S. tariffs. Meanwhile, the Chinese yuan hovered near its strongest level in over a year, as markets awaited fresh property and activity data amid renewed concerns over China’s troubled real estate sector following payment issues at state-backed developer China Vanke.
Commodity markets were mixed, with Brent crude edging higher on refinery disruptions in Canada, while gold prices eased slightly after a strong rally last week. Cryptocurrency markets remained under pressure, with bitcoin and ether extending recent losses as risk appetite stayed subdued.
